The Senate acted on an important procedural step that clears the way for the extension of the home buyer tax credit. If all goes as planned, the extension should move its way to enactment in the next week or two.
The program was set to expire December 1, 2009. The extension will keep the credit in place through next spring. When enacted, the tax credit will be available for primary residence purchases that are under contract by April 30, 2010 and close by June 30, 2010.
The original tax credit was aimed at just first-time home buyers, and offered them a credit of 10% of the purchase price to a maximum of $8,000. The version of the credit making its way through Congress now keeps that credit in place, but it will now cover some repeat buyers as well.
The new tax credit will be available to buyers who have owned a primary residence for five consecutive years out of the last eight. The credit amount will be $6,500.
Qualifying income limits for both the first-time buyer credit and the repeat buyer will be raised to $150,000 for single tax filers and $225,000 for joint filers. That will cover a lot of buyers in our region.
We will keep you posted on the progress as the extension and expansion of the program makes it through Congress.
Tuesday, November 3, 2009
Friday, October 30, 2009
Buyer's Guide Featured Articles
Tax Credit Update
The current $8,000 tax credit for first-time homebuyers expires at the end of November. Read more on our October posting entitled
"Tax Credit Extension Moves One Step Closer"
Existing Home Sales Surged in September
Existing home sales jumped 9.4% in September to an annual rate of 5.57 million homes, which is the highest rate in more than two years. Read more on our October posting entitled
"Existing Home Sales Jump, New Home Sales Drop"
The current $8,000 tax credit for first-time homebuyers expires at the end of November. Read more on our October posting entitled
"Tax Credit Extension Moves One Step Closer"
Existing Home Sales Surged in September
Existing home sales jumped 9.4% in September to an annual rate of 5.57 million homes, which is the highest rate in more than two years. Read more on our October posting entitled
"Existing Home Sales Jump, New Home Sales Drop"
Thursday, October 29, 2009
Tax Credit Extension Moves One Step Closer
The Senate just moved the home buyer tax credit a step closer to an extension (and expansion), according to a news report today from CNBC.
Enactment of the extension is still quite a ways off, but the Senate has reportedly reached a compromise on what the tax credit provision would look like going forward.
The first-time buyer credit of up to $8,000 (or 10% of the purchase price, whichever is less) would be extended until April 30, 2010.
The program is also slated for expansion. If passed it would provide a benefit to people who have owned and lived in a primary residence for five consecutive years out of the past eight. These buyers would have a $6,500 tax credit.
A lot of political maneuvering must still occur before this is a done deal. Senate leaders want to attach the tax credit provision to a bill that would extend unemployment benefits.
If the Senate does act favorably, the House must take action. So stay tuned. We will keep you updated as this moves its way through Congress.
Enactment of the extension is still quite a ways off, but the Senate has reportedly reached a compromise on what the tax credit provision would look like going forward.
The first-time buyer credit of up to $8,000 (or 10% of the purchase price, whichever is less) would be extended until April 30, 2010.
The program is also slated for expansion. If passed it would provide a benefit to people who have owned and lived in a primary residence for five consecutive years out of the past eight. These buyers would have a $6,500 tax credit.
A lot of political maneuvering must still occur before this is a done deal. Senate leaders want to attach the tax credit provision to a bill that would extend unemployment benefits.
If the Senate does act favorably, the House must take action. So stay tuned. We will keep you updated as this moves its way through Congress.
Olympia in the Fall
The ground is covered with a layer of wet yellow leaves and it is spectacular. Bright colors, crisp clean air, foggy mornings, Olympia is a great place to live!
One of our favorite places to visit this season is Tumwater Falls Park. This 15 acre park is located on the last quarter mile of the Deschutes River. Enjoy the beautiful fall colors along the one-half mile of trails, picnic in the park and enjoy nature. Tuwmater Falls Park is located on "C" St & Deschutes Way Tumwater, WA 98501.
Don’t forget your camera when you are out and about! You don’t want to miss what Mother Nature has created!
Don’t forget your camera when you are out and about! You don’t want to miss what Mother Nature has created!
Wednesday, October 28, 2009
Existing Homes Sales Jump, New Home Sales Drop
Existing home sales surged in September, bringing sales to the highest point since 2007. At the same time, the Department of Commerce just reported that sales of new single family homes fell 3.6% in September to an annual pace of 402,000 units.
Sales of both existing and new homes had been on the rise of late, encouraging many an economist that the worst is behind us. Some will say that the new home sales numbers show that this will be a shakier recovery than in past recessions.
That may be true, but keep in mind that home sales as a whole are up by a pretty large margin. Those sales are helping bring down the inventory of unsold homes, which is so vital to returning to sustainable times.
Analysts had expected new home sales to rise to 440,000 units, most likely based on the final push of first-time buyers looking to take advantage of the $8,000 tax credit that expires at the end of November.
We would expect new homes sales to continue to decline over the next month or two before picking up again. The reason is the expiration of the tax credit.
Buyers looking at new homes will find some homes that are already completed and those that are not yet finished. First-time buyers, which account for nearly 45% of the buyers at the moment, are looking to eliminate any possible risk of missing out on the credit. Purchasing a home still under construction without a guarantee of closing before November 30th will push many would be new home buyers to existing homes.
The numbers may already be bearing this out. In September, sales of existing homes jumped 9.4% to an annual rate of 5.57 million. This is the highest rate in more than two years.
Sales of both existing and new homes had been on the rise of late, encouraging many an economist that the worst is behind us. Some will say that the new home sales numbers show that this will be a shakier recovery than in past recessions.
That may be true, but keep in mind that home sales as a whole are up by a pretty large margin. Those sales are helping bring down the inventory of unsold homes, which is so vital to returning to sustainable times.
Analysts had expected new home sales to rise to 440,000 units, most likely based on the final push of first-time buyers looking to take advantage of the $8,000 tax credit that expires at the end of November.
We would expect new homes sales to continue to decline over the next month or two before picking up again. The reason is the expiration of the tax credit.
Buyers looking at new homes will find some homes that are already completed and those that are not yet finished. First-time buyers, which account for nearly 45% of the buyers at the moment, are looking to eliminate any possible risk of missing out on the credit. Purchasing a home still under construction without a guarantee of closing before November 30th will push many would be new home buyers to existing homes.
The numbers may already be bearing this out. In September, sales of existing homes jumped 9.4% to an annual rate of 5.57 million. This is the highest rate in more than two years.
Monday, October 26, 2009
Congress to Consider Extension of the First-Time Homebuyer Tax Credit
This is a big week for both supporters and detractors of the federal government’s first-time homebuyer tax credit. Key votes will occur over the next couple of days that may decide whether the credit gets extended (and perhaps expanded) beyond its current expiration date, December 1, 2009.
According to the National Association of Realtors, the tax credit will be reason that 350,000 people chose to buy a home this year. This group represents about 6% of all homebuyers in 2009.
This stimulated demand is helping bring down housing inventory, which is one of many factors needed for a recovery. The inventory of unsold homes across the country is now at a 7.8 month supply, which is the lowest level in more than two years. A 6 month supply is considered a balanced market.
However, far more people, nearly 1.8 million, will actually benefit from the first-time homebuyer tax credit. This means that nearly 81% of first-time buyers would have purchased a home even without the credit.
The reason has to do with price. The tax credit, which equates to a more than 4% of the median priced home’s cost, is a nice incentive. However, it is not enough to overcome the cost of buying an overpriced home. Affordability is the real driver of home buying decisions. The median price of a home in the U.S. is now below $178,000, which is 12.5% below year ago levels.
In our local market, overpriced homes are requiring far more than a 4% reduction in price before selling. In September, the overpriced homes required on average a 21% price reduction before selling.
Almost half of the homes are well-priced right now. To buyers of these homes, the tax credit is making a difference. Whether it is making enough of a difference to convince Congressional leaders will be played out this week.
There are two proposals that may be considered this week. This first, offered by Senators Dodd and Isakson, is an extension of the credit through the middle of next year. It would also expand the credit to all buyers of a primary residence. The total cost of this proposal would be $16.7 billion.
The second proposal, offered by Senate Majority Leader Reid, would extend the credit through the end of next year. It would apply only to first-time buyers. The amount would remain at the existing $8,000 (or 10% of the purchase price, whichever is less), but it would phase out $2,000 each quarter throughout 2010. The lower cost of this proposal is one of the reasons it is emerging as the favored proposal.
Regardless of the direction, it should be an interesting week on Capitol Hill.
Click image to enlarge.
Statistics compiled by Coldwell Banker Evergreen Olympic Realty, Inc. from the NWMLS database. Statistics not compiled or published by NWMLS.
According to the National Association of Realtors, the tax credit will be reason that 350,000 people chose to buy a home this year. This group represents about 6% of all homebuyers in 2009.
This stimulated demand is helping bring down housing inventory, which is one of many factors needed for a recovery. The inventory of unsold homes across the country is now at a 7.8 month supply, which is the lowest level in more than two years. A 6 month supply is considered a balanced market.
However, far more people, nearly 1.8 million, will actually benefit from the first-time homebuyer tax credit. This means that nearly 81% of first-time buyers would have purchased a home even without the credit.
The reason has to do with price. The tax credit, which equates to a more than 4% of the median priced home’s cost, is a nice incentive. However, it is not enough to overcome the cost of buying an overpriced home. Affordability is the real driver of home buying decisions. The median price of a home in the U.S. is now below $178,000, which is 12.5% below year ago levels.
In our local market, overpriced homes are requiring far more than a 4% reduction in price before selling. In September, the overpriced homes required on average a 21% price reduction before selling.
Almost half of the homes are well-priced right now. To buyers of these homes, the tax credit is making a difference. Whether it is making enough of a difference to convince Congressional leaders will be played out this week.
There are two proposals that may be considered this week. This first, offered by Senators Dodd and Isakson, is an extension of the credit through the middle of next year. It would also expand the credit to all buyers of a primary residence. The total cost of this proposal would be $16.7 billion.
The second proposal, offered by Senate Majority Leader Reid, would extend the credit through the end of next year. It would apply only to first-time buyers. The amount would remain at the existing $8,000 (or 10% of the purchase price, whichever is less), but it would phase out $2,000 each quarter throughout 2010. The lower cost of this proposal is one of the reasons it is emerging as the favored proposal.
Regardless of the direction, it should be an interesting week on Capitol Hill.
Click image to enlarge.
Statistics compiled by Coldwell Banker Evergreen Olympic Realty, Inc. from the NWMLS database. Statistics not compiled or published by NWMLS.
Friday, October 23, 2009
You're Invited!
Thurston Economic Development Council and the Port of Olympia has announced the NorthPoint Open Houses - You're Invited!
A developer will present its concepts for redevelopment of the NorthPoint District. This waterfront property is located on Marine Drive at the northern tip of the Port Peninsula in downtown Olympia. NorthPoint features spectacular views of Budd Inlet and the Olympic Mountains.
·See proposed development concepts for NorthPoint
·Meet the developer and ask questions
·Provide the Port with your input and comments
TUESDAY October 27, 6:30 p.m. to 8:30 p.m.
The Lacey Community Center
6729 Pacific Avenue SE Olympia, WA 98503
WEDNESDAY October 28, 6:30 p.m. to 8:30 p.m.
The Olympia Center
222 Columbia Street NW Olympia, WA 98501
THURSDAY October 29, 6:30 p.m. to 8:30 p.m.
Tumwater Comfort Inn
1620 74th Avenue SW Tumwater, WA 98501
For More Information Contact:
Heber Kennedy
360.528.8070
http://www.portolympia.com/about/northpoint
A developer will present its concepts for redevelopment of the NorthPoint District. This waterfront property is located on Marine Drive at the northern tip of the Port Peninsula in downtown Olympia. NorthPoint features spectacular views of Budd Inlet and the Olympic Mountains.
·See proposed development concepts for NorthPoint
·Meet the developer and ask questions
·Provide the Port with your input and comments
TUESDAY October 27, 6:30 p.m. to 8:30 p.m.
The Lacey Community Center
6729 Pacific Avenue SE Olympia, WA 98503
WEDNESDAY October 28, 6:30 p.m. to 8:30 p.m.
The Olympia Center
222 Columbia Street NW Olympia, WA 98501
THURSDAY October 29, 6:30 p.m. to 8:30 p.m.
Tumwater Comfort Inn
1620 74th Avenue SW Tumwater, WA 98501
For More Information Contact:
Heber Kennedy
360.528.8070
http://www.portolympia.com/about/northpoint
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